Kansas payroll taxes for employers (2026)

Kansas payroll rules that catch new employers

The workers comp test in K.S.A. 44-505 is a dollar test, not a headcount test. A non-agricultural employer with more than $20,000 of gross payroll in a calendar year must carry coverage, and wages paid to family members do not count toward that figure. A single full-time hire at $50,000 takes you past it during the year, so plan coverage before you hire. Coverage can come from a commercial insurer, a group-funded pool or self-insurance; Kansas has no monopolistic state fund.

• Monthly pay is legal: K.S.A. 44-314 only requires payday at least once a calendar month on regular days you announce in advance.
• Final pay waits for payday: fired or quit, wages are due no later than the next regular payday (K.S.A. 44-315).
• Construction starts high: a new construction employer pays 5.55% instead of 1.75%, against a range of 0% to 6.95% for experienced accounts.
• Bonuses withhold at 5%: when federal withholding on supplemental pay uses a flat percentage, Kansas uses 5% of the gross. The KW-100 we read is revision 10-24, for wages paid on or after July 1, 2024; we found no 2026 revision.
• No state paid leave program that we could find, and KDOL lists no surcharge on top of the UI rate.

Our data shows no Kansas local wage tax, though we did not verify that on an official page this month. The catch is the state line in the Kansas City metro: Kansas City, Missouri charges a 1% earnings tax on nonresidents for work done inside its city limits, so a Kansas business sending staff to jobs across the state line should read our page on the Kansas City and St. Louis earnings taxes.

Kansas employer payroll facts at a glance

Registering with KDOL and the Department of Revenue

1. Get a federal EIN.
2. Register as a new employer with KDOL from its Employer Services page (dol.ks.gov/employers/employer-services). That account carries your 1.75% or 5.55% rate.
3. Register for withholding with the Kansas Department of Revenue and set up the KW-100 tables in your payroll system.
4. Report new hires to KDOL within 20 days of hire.
5. Once payroll will pass $20,000 for the year, bind workers comp coverage.
6. Publish your regular paydays in advance, at least monthly.

Cost math for a $50,000 Kansas employee

Here is what a first-year Kansas employer pays on top of a $50,000 salary.

A construction employer at 5.55% pays $838.05 in SUTA instead, for a total of $4,705.05. Compare the $15,100 base with neighbors on the state-by-state SUTA list, and check the 2026 minimum wage table if you pay hourly; Kansas uses $7.25 and a $2.13 tipped cash wage.

Kansas payroll providers and PEOs

Most payroll services handle Kansas without trouble. Two things to confirm: that the provider is using current Department of Revenue tables rather than an old bracket set, and that it can add a Kansas City, Missouri earnings tax line for any employee who works over the state line. If you came here looking for an Arkansas payroll calculator, that is a different state with its own rates: see Arkansas payroll taxes.

Start with our payroll software comparison. If you want a provider to carry workers comp and benefits too, look at the PEO rankings.